NYC Retirees Incl. FDNY, NYPD, EMS, Teachers, Other City Workers Win Permanent Injunction From NY State Supreme Court; City Files Appeal, Fight Continues

State Supreme Court Rules Against New York City’s Plan to Strip City Retirees of Promised Medicare Benefits

 

Court Had Issued Preliminary Injunction in July; Today’s Ruling Permanently Bans City From Implementing Inferior Aetna Medicare Advantage Plan

NEW YORK  — The New York County Supreme Court issued a final ruling permanently stopping the City from forcing a quarter-million elderly and disabled retirees off of their longstanding Medicare insurance and onto an inferior type of insurance called “Medicare Advantage.”  Unlike Medicare—a public program that has protected City retirees for the past 57 years—the City’s new Aetna Medicare Advantage plan is a private, for-profit endeavor that would limit retirees’ access to their medical providers, prevent retirees from receiving care prescribed by their doctors unless Aetna deemed it “medically necessary,” and expose retirees to increased healthcare costs.

The Court had issued a preliminary injunction last month, with Supreme Court Justice Lyle E. Frank noting that the retirees “have shown by clear and convincing evidence” that implementation of the new Aetna Medicare Advantage plan would likely violate their rights in numerous ways.  Justice Frank also ruled that “should this plan go forward, irreparable harm would result” to countless retirees.

Today the Court ruled in favor of the retirees on multiple grounds.  Among them was the fact that, since the 1960s, the City has guaranteed every active and retired City worker—by statute and through written and verbal promises—that when they became elderly or disabled, they would be entitled to City-funded healthcare through a combination of Medicare plus Medicare “supplemental” insurance, which covers healthcare expenses that Medicare does not.

The decision is available here. 

Statement from the Mayor’s Office: “We are extremely disappointed in this ruling, and intend to appeal. This Medicare Advantage plan, which was negotiated closely with and supported by the Municipal Labor Committee, would improve upon retirees’ current plans, including offering a lower deductible, a cap on out-of-pocket expenses, and new benefits, like transportation, fitness programs, and wellness incentives. In addition, it would save $600 million annually, especially critical at a time when we are already facing significant fiscal and economic challenges. This decision only creates confusion and uncertainty among our retirees.”

Marianne Pizzitola states in response to the Mayor’s statement, “The only one confused or uncertain is the Mayor if he cannot see that the Aetna  Dis-Advantage plan is:

• NOT Medicare
• NOT a savings
• NOT an improvement to our current plan as even Congress knows that!
• Trades access to health care and our lives for cheap “perks” like SilverSneakers or processed meals we do not need nor want
• A danger due to prior authorizations, wrongful delays and denials of care and drains the Federal Medicare Trust with ‘upcoding’
• A diminished health plan that will harm retirees
• Will NOT save $600 million annually

The Court repeatedly found the City is on the wrong side of history, breaking several laws to implement this scheme which would harm the very people who built this City.  If the Mayor wants to save the City money, he should live up to the promise made to us as we lived up to ours, and he should stop spending taxpayer dollars to harm senior citizens and the disabled.  The City and the Municipal Labor Committee sought to sell off Retiree Healthcare to enrich a fund they misused.  Their savings agreement has been found illegal and they should drop this idea and go back to the drawing board.   Call a mulligan already and come up with better solutions like we suggested and leave retirees alone.”

Jake Gardener, a partner at Walden Macht & Haran LLP, counsel to the retirees, says, “We are grateful to Justice Frank for again recognizing the multiple ways in which the health and healthcare rights of retired City workers would be imperiled by the City’s new Medicare Advantage plan.  Because of Justice Frank’s well-reasoned decision, hundreds of thousands of senior citizens and disabled first responders will be able to continue receiving the medical care they desperately need and to which they are entitled.”

Marianne Pizzitola, President of the New York City Organization of Public Service Retirees, one of the lead plaintiffs, states, “This is now the third time in the last two years that courts have had to step in and stop the City from violating retirees’ healthcare rights.  We once again call on the City and the Municipal Labor Committee to end their ruthless and unlawful campaign to deprive retired municipal workers of the healthcare benefits they earned. Knowing after every win, the City has found a way to go around the Judge’s decision, the City Council should support Intro 1099 sponsored by Councilman Charles Barron, and stop this administration from wasting taxpayer dollars appealing righteous decisions by the Court. NYC Retirees earned their right to Federal Medicare and we relied on the promise we would have this benefit through our lifetime.  We hope this decision will help retirees nationwide stop their former unions and employer from privatizing the Federal Public Health Benefit of Medicare so we can live the rest of our lives in peace.”

Banner Image: Doctor counseling retired senior. Image Credit – National Cancer Institute